The Financial Stability Board (FSB) has issued a warning in its 2025 annual report, highlighting the potential risks posed by dollar-denominated stablecoins to the financial stability of emerging markets and developing countries. The report outlines concerns that the circulation of these stablecoins across multiple jurisdictions could lead to currency substitution, reduced use of local payment systems, weakened monetary policy effectiveness, and evasion of capital controls. The FSB emphasizes that as stablecoins become more integrated with the traditional financial system, regulatory bodies worldwide must continue to monitor associated liquidity, operational risks, and systemic impacts. The report underscores the need for ongoing vigilance as the relationship between stablecoins and conventional finance deepens.